Archived article

Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Cuts to National Insurance contributions and fuel duty
Thursday 24 Mar 2022 Author: Ian Conway

At a time when UK households face an unprecedented squeeze on their budgets, the chancellor’s targeted tax cuts will go some way to helping those on low and middle incomes.

The ceiling for National Insurance contributions has been equalised with that of personal tax at £12,570 starting from July.

That amounts to a £6 billion cut in deductions or an average of £330 more in salary per person per year, although for almost three quarters of workers the cut means more than a £330 per year uplift.

Instead of a windfall tax on big oil producers, which never looked likely, there is a 5p per litre cut in fuel duty for the next 12 months which will help those who drive.

There was no substantial help for those facing a huge jump in their home energy bills next month, however.

For small business, there will be a 50% discount on annual business rates up to £100,000 from next month and an increase in employment allowance which will undoubtedly help areas such as hospitality.

Lastly, the basic rate of income tax will be cut from 20% to 19% in 2024. 

‹ Previous2022-03-24Next ›